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STRIX, an Isle of Man electrical goods company, is projecting
a large rise in its sales of water filters on the back of a series of
deals with makers of small household appliances across the world.
The private company is known as the world’s biggest maker of kettle
thermostats, a field that has provided it with rapid growth in the past 20 years.
In the past to years, it has diversified into water filters, a sector
that Eddie Davies, the company’s chairman and part-owner, thinks should
expand explosively in the next decade as more people, particularly in
developing nations, demand safer drinking water. He said STRIX’s sales
of water filters – small devices that fit into specialised electronic
systems that use electricity to boil water and also purify it – should
expand tenfold by 2006 from £1m last year.
STRIX which is 40 percent owned by Montagu Private Equity, formerly
the venture capital arm of the HSBC bank – has signed deals with
several appliance makers that are making water purifiers for
consumers, in many cases at least partly based on STRIX’s designs.
These companies include UK-based Morphy Richards, which is owned by
Ireland’s Glen Dimplex; Hamilton Beach of the US, which is owned by Nacco,
a diversified industrial group; Nu World Industries of South Africa; Electro
Hanan of Israel; and Poland’s MPM.
Other appliance-makers using STRIX’s filter technology include
China-based Eternal and EUP.
The filters made by STRIX are thrown away after being used several times.
The average household would need four of them a year – costing a few
pounds each in the shops.
Consumer water purifiers generally sell for £20-£50 depending on
sophistication.
Mr Davies said the world market for such systems was worth about
£400m a year, roughly half of this coming from Europe, with this
figure due to increase significantly in the next decade.
In the UK, consumer water purifiers add up to sales of about
£90m a year, with this figure having doubled since the mid-1990s. The
market leader in Britain by some way is Brita, the German appliance-maker.
However, Brita uses a relatively simple, non-electrical design that
uses gravity to push water through a filter.
According to Mr Davies the STRIX-based cleansing system gives higher
purity water as it requires the liquid to be boiled as well as using
a chemical filter.
STRIX’s sales were £85m last year and Mr Davies wants to increase
that to more than £100m by 2006.
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